So this trade journal will be based on the analysis i did on 15/01/2023
So my initial trade setup was a Sell stop from the $11450 zone downwards to $11400. I anticipated a hidden divergence was gonna form, but the market played out a whole different way. On 16/01/2023 the market made the first impulsive move downwards and reversed after that. I normally dont say this, but i actually hade a bit of hope that it might drop again, but that didnt happen.
Looking at the 15min chart, it obvious that a ascending trendline was starting to form, because the price kept bouncing off of it. Also whats obvious, is thag the price was not breaking the peak highs. With all of that said, if u focus on the market structure, and draw the right trendlines, the market was forming a Bullish Pennant just before 11:30 am. Normally when we spot these formations, its a no brainer.
So, witn all said and done, i drew my trendlines, and im waiting for the price to reach the lower ascending trendline around the $11420, and then enter a buy trade, if the price respects the zone. Basec on the 1hr anc 4hr chart, i believe we are still in it to reach the $12000 zone.
Based on how the market played out, i reminded myself that, eventhough you have a trade in place, market situations will always change. Its important for a trader to know when to adjust to the changing market dynamics for optimum trade capitalisation.
So my initial trade setup was a Sell stop from the $11450 zone downwards to $11400. I anticipated a hidden divergence was gonna form, but the market played out a whole different way. On 16/01/2023 the market made the first impulsive move downwards and reversed after that. I normally dont say this, but i actually hade a bit of hope that it might drop again, but that didnt happen.
Looking at the 15min chart, it obvious that a ascending trendline was starting to form, because the price kept bouncing off of it. Also whats obvious, is thag the price was not breaking the peak highs. With all of that said, if u focus on the market structure, and draw the right trendlines, the market was forming a Bullish Pennant just before 11:30 am. Normally when we spot these formations, its a no brainer.
So, witn all said and done, i drew my trendlines, and im waiting for the price to reach the lower ascending trendline around the $11420, and then enter a buy trade, if the price respects the zone. Basec on the 1hr anc 4hr chart, i believe we are still in it to reach the $12000 zone.
Based on how the market played out, i reminded myself that, eventhough you have a trade in place, market situations will always change. Its important for a trader to know when to adjust to the changing market dynamics for optimum trade capitalisation.
